Diamond Auction 101
Diamonds sold at legendary auction houses such as Sotheby’s and Christie’s frequently make the headlines. For those considering the best way to sell diamonds, second-hand jewelry or unwanted engagement rings, selling at diamond auction can look like an appealing option. But is it best to sell diamonds directly to a buyer or at auction? We review the pros and cons of each option to help you make the best decision.
Get answers to the following questions about auctioning diamonds:
- How does a diamond auction work?
- What kinds of diamonds can you sell at auction?
- Disadvantages of a diamond auction?
- What is the best way to sell a diamond?
- How selling to a diamond buyer works
How Does A Diamond Auction Work?
Diamond auction selling works in exactly the same way as auctioning any other valuable item:
- You find an auction house
- Contact them to see if they would be interested in your stone
- Discuss the terms and costs
- Wait for the diamond auction to take place and see if there is any interest on the day
The real advantage of auctioning diamonds is that you are able to work with industry specialists and achieve strong prices, should your diamonds get in front of the right bidders. If you have the luxury of time and are willing to do your research, auctioning diamonds and jewelry could represent one way forward.
What Kind Of Diamonds Should Go To Diamond Auction?
For those thinking “Great! Where can I auction my diamond?”, it is worth pointing out that not all diamonds are suited for the auction house. In fact, the vast majority of diamonds on the market will not perform well at auction. The reason being is simple: most diamonds are not investment pieces and as such, large, reputable auction houses will not be interested. They focus on rare stones and do not feature the average stone that most jewelry is made up of. There are two types of auction worthy diamonds:
These perform well on the auction block and can fetch millions of dollars from wealthy collectors. They do however need to have outstanding grading’s and most importantly must be exceptionally rare colors (i.e. vivid red, pink or blue diamonds).
2. Non-Fancy Color Diamonds
White diamonds can also make it to auction but bear in mind that these diamonds have unique characteristics: top color, clarity and cut grading’s as well as a large carat weight, typically over 5ct.
Disadvantages Of A Diamond Auction
1. Time and Labor Intensive
Selling through an auction house requires a certain amount of time and effort. If you have established that your diamond or diamond jewelry does meet auction house standards, you must first research reputable auction houses in your area. Different auction houses have varying degrees of specialism in diamonds and jewelry.
You will want to ensure that you are working with the best in the industry and be clear on the following:
- The fees that the diamond auction house will charge you upon a sale
- How often they hold diamond auctions
- Their typical audience
- How long after the sale you will get paid
Auctions are not a daily occurrence; these are typically scheduled on a monthly basis or less frequently. Should you have a busy schedule and be looking for a quick sale, auction houses are not necessarily the right route.
2. No Guarantee That Your Diamond Will Sell
It is important to set your expectations. Ultimately, there is no guarantee that if your item will sell if it goes to auction. Depending on the diamond you own, it may take multiple auctions to get your stone in front of the right audience. There is an element of luck involved as to whether the auction is well attended and if there is a buyer present willing to pay your asking price. You could find yourself in a situation whereby you wait one month for an auction only for your item not to sell. You repeat this process multiple times with no guaranteed sale and considerable time and energy expended.
Furthermore, given that only a reserve price has been established, you will not know how much money you will leave with. This lack of certainty coupled with a lengthy sale process is not ideal for those seeking a quick and less convoluted option.
The auction house will take a fee of the final sale price. The fee varies per auction house so be sure to know exactly what that is and factor that into the lowest price you would be willing to accept. Once this fee is deducted, it may be that selling at auction is not the most profitable option available to you. Be sure to have researched other options and received price quotes from other buyers.
What Is The Best Way To Sell A Diamond?
WP Diamonds is the faster and safer way to sell diamonds for the best prices. Established in 2012, our process can take as little as 24 hours from beginning to end. With the option of selling diamonds online or via appointment, our team of GIA trained gemologists buy diamonds, diamond jewelry and engagement rings from customers around the world. We are proud of our A+ BBB rating and over 1,500 satisfied customers reviews. There are no fees or commissions deducted from your final offer.
Mary got in touch with WP Diamonds after taking her diamond to a well-known diamond auction house. They had set a reserve price of $17,000 with a 30% fee upon sale. Had the diamond sold at the minimum price she would have received just $11,900.
She was relieved when her item did not sell and WP Diamonds offered her $16,500 upfront with no fees and a quick transaction. This is not an uncommon scenario; many first time sellers try auctioning diamonds and jewelry but ultimately turn to online diamond buyers.
How Selling To A Diamond Buyer Works
The advantage of selling to a diamond buyer is that it is a simple transaction whereby you are quoted a final price that you can chose to accept or decline. You are working with diamond experts who can ascertain the true value of your diamond based on current market prices. It is a straightforward and less time consuming option when compared to selling at auction.
How selling to WP Diamonds works:
- Simply contact a trustworthy and established diamond buyer with the relevant information on your stone.
- They will then provide you with an initial price range and schedule an appointment or for you to send your diamond in for a final price.
- You can then opt to be paid by bank wire or check and the process is complete.
WP Diamonds is an established and reputable diamond buyer. Unlike selling diamonds at auction, there are no fees or percentage cut deducted from your offer. Our final price is what you will receive in your bank account. Our process can take as little as 24 hours, with the option of selling online or via appointment. For ease of transaction and a secure process with a guaranteed sale, click the button below fill out our online form today and we will be in touch shortly with a price quote.